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Corporate Social Responsibility (CSR)

Introduction

FFG has always insisted on the philosophy of "Sincerity and Responsibility for Permanent Operation" since its establishment in 1979 in Taiwan. Employees at FFG are all focused on Innovalues,Marketing & Service,Reasonable Management,and Continuous Improvement with selfless & fearless spirits. Gradually, FFG becomes a global conglomerate with diversified products.

In recent years, FFG set up close to 96 production and operation bases in Taiwan,United States,Japan,India,and Europe. FFG's diversified product lines are divided into machine tools,electronic equipment,industrial equipment,and green energy industry with products in CNC machine tools,electric tools and equipment,forklifts,construction machinery, elevator equipment,parking equipment,pneumatic tools,printed circuit board and LCD TV,LCD display,LED lighting,solar electric conductive adhesive, magnesium alloy processing,LED/TP/PCB electronic testing equipment and other products.  In CNC machine tool section alone,currently with 50 operation bases and 37 brands,accounts for more than 40% of FFG's total revenue. FFG has become a manufacturing conglomerate with the most complete product line of CNC machine tools in the Greater China region.  In 2009,FFG's CNC machine tool sales surpassed Germany, Japan and other manufacturers,becoming the NO.1 CNC machine tool manufacturer in the world.

Laying the foundation in Xiaoshan
With China's rapid economic growth and FFG's globalization strategy,FFG set up its first sole proprietorship enterprise in China - Hangzhou Good Friend Precision Machinery Co.,Ltd.  This operation,established in Xiaoshan Hangzhou in 1993,is mainly engaged in the manufacturing of CNC machine tools,parking garage system,and forklift.

Since the establishment,Good Friend has developed steadily and has become the biggest foreign-owned CNC machine tool manufacturer in China and is also a national high-tech benchmark enterprise.  Good Friend is one of the top ten economic contributing enterprises in Xiaoshan.

With the continuous improvement of Good Friend's management,technology,quality, marketing,service and support structure,FFG's China business group Good Friend Int'l Holdings Inc. (mainly Good Friend) became the first listed company in Hong Kong Stock Exchange in 2006 ( Stock Code: 2398).  Also,Good Friend Int'l Holdings Inc. is the first listed Chinese company in Hong Kong which operates in CNC machine tool,parking garage system,forklift industry and has successfully entered the global stage.

The development of Good Friend's CNC machine tool received major support and recognitions from all levels of government in China.
FFG utilizes this as an opportunity and motivation to accelerate expansion and at the same time,expands China's business territory and implements regional group strategy.

From JIANG DONG to the WORLD
In 2006,Zhejiang CNC equipment industry base was established in Xiaoshan Jiangdong industrial area.  While developing the CNC machine tool bases in Xiaoshan and Xiasha,FFG also actively planned the construction of FFG Science and Technology Industrial Park in Jiang Dong.  FFG collaborates with the well-known CNC precision machinery and suppliers from Taiwan,Japan,Europe and America to invest and set up factories,to form a CNC equipment industry supply chain and satellite cooperation system.  FFG's Science and Technology Industrial Park in Jiangdong will become an operation and R & D center,a CNC machine tool manufacturing center in China,and even becomes a global CNC machine tool manufacturing center.

At present,Hangzhou Glory Friend Precision Machinery Technology Co.,Ltd in the Industrial Park (Jiang Dong) has begun construction.  The Hangzhou Feeler–Takamaz Machinery Co.,Ltd. (a joint-venture with Takamaz and Toyota Tsusho) and another precision screw compressor project (a joint-venture with IWATA Japan) are now applying for land use permit and will begin construction soon.

FFG Corporate Social Responsibility  

  1. Contribution to society
    "Taking from society and feeding back to society" is the core spirit of the FFG corporate social responsibility. In addition to providing quality products,services,pursuing a better quality of life for the people around the world,FFG also actively participates in a variety of social welfare activities and personnel training programs in hope for improving the quality of life of less-fortunate groups and nurture talents through corporate power. Thus to contribute to social harmony and to fulfill corporate social responsibility.
    1. Fair Friend Institute of Electromechanics
      In 2005,Good Friend started the construction of FFG Science and Technology Industrial Park (Xiasha) and hoped that the past development experience of Taiwan machine tool industry could transfer to the China. The total investment for the enterprises like Hangzhou Global Friend Precision Machinery Co.,Ltd and Hangzhou Ever Friend Precision Machinery Co.,Ltd totaled over 135 million US dollars. These three enterprises have begun production of horizontal machining centers and forklifts and they are manufactured in accordance with the China's current economic policy by providing reliable equipment and support for customers' industrial upgrade and enterprise transformation.
      While in pursuit of reasonable economic benefits,FFG has always remembered to perform and fulfill its corporate social responsibility. For example,FFG cooperates with Hangzhou Vocational & Technical College to establish Fair Friend Institute of Electromechanics. This institute can cultivate excellent CNC professionals with theoretical knowledge and practical skills to meet the needs of the Group's business. More importantly,it can also provide strong talented human resource for machine tools and other related industries and solving student employment problems as well. Ultimately,FFG achieves a win-win situation for businesses,schools,students and society.  
    2. My one acre of farmland (My Paddy Field)
      In November 2009,FFG participated in the social welfare event of "My one acre of farmland" in Taiwan. Even though the government has the limited power to take care of the farmers,but the enterprise still have the power to do something for them. FFG tries its best to assist the rice farmers to open up market and increase profit. At the same time,setting up a bridge of adopting farmland with enterprises directly and allowing enterprises to enjoy high quality rice in Taiwan.


       
    3. Disaster donations
      In August 2009,Typhoon of Morac hit southern Taiwan and destroyed hundreds of houses and caused serious casualties. The entire staff of FFG donated a total of NTD980,000 (USD 33,000) and entrust the donation to Red Cross to help the residents. Also,in May 2008 ,the Sichuan earthquake caused thousands of death and people homeless. Taking action to help damaged region and to rebuild their homes,all the staff of FFG donated a total of NTD5,760,000 (USD 189,000). At the same time FFG sent personnel over to visit local colleagues and provided medical and financial assistance and let the residents feel loving care from Taiwan.
    4. Disaster donations
      In August 2009,the Typhoon of Morac hit southern Taiwan which destroyed hundreds of houses and caused serious casualties. The entire staff of FFG donated a total of NTD980,000 and entrust the donation to Red Cross to help the residents.
      Also,in May 2008 ,the Sichuan earthquake caused thousands of death and people homeless. Taking action to help damaged region and to rebuild their homes,all the staff of FFG donated a total of 5,760,000. At the same time FFG sent personnel over to visit local colleagues and provide medical and financial assistance and let the residents feel sincere care from Taiwan.
  2. Corporate Governance
    "Maintain good company governance and comply with business ethics" is one of FFG's important core commitments to the social responsibility as well as the basic principle that should be provided as a responsible enterprise. FFG implement this belief into daily operation by using a complete planning and employee education

    1. Corporate Structure
      FFG believes that the high-quality corporate governance is the guarantee for companies operating in optimum condition and the best way to balance all the interest for all parties. The Board currently has 5 Directors and one supervisor present,for a term of three years. The chairman of the board does not hold a position in the company's administrative duties. In order to enhance the responsibility and credibility of the Board of Directors,the board would hold the meeting every quarter. Corporate governance emphasizes the transparency of operation in order to be responsible for employees and shareholders. We will continue to strengthen the organization and function of the board of directors to ensure our corporate governance to be better,and to meet all the needs of all parties.
    2. Ethics Standard
      Since FFG's establishment in Taiwan in 1979,FFG insists on the philosophy of "Ernest and Responsible For Permanent Operation" and the company culture of "Diligence & Frugality,in Pursuit of Excellence". All of the staff is committed to comply with legal and ethical principles to maintain our assets,interests and image,to enable the company to hold a sustained operation and development,and fulfill the responsibilities to shareholders,government and society.
       
  3. Pursuit of balancing interests among relevant parties.
    Fair Friend is always insisting on the spirit of mutual benefit and common prosperity among shareholders,manufacturers,customers,and employees. As a corporate citizen,Fair Friend is taking into account the balancing interests among relevant parties all the time.
    1. Employee Policy and Communication Channels
      Since Fair Friend hopes to make the staff "feel at home" when they are at work while emphasizing innovation and nurture our staff,and constantly improve the value of employees and consumer services. As our staffs are the most important asset of the company,so we set the benefit system and policy and adhere to the relevant policy.
      The salary is based on competitive industry environment and market as well as personal potential and performance to make the salary differences in hope of attracting and motivating talented personnel. Regarding the employee performance evaluation,we use the HR assessment system. In addition,since 2011 the "Labor Contract Law" came into force in China,local employees' payment,insurance and welfare are all in accordance with the requirements of the "Labor Contract Law" principle. Moreover,since the mainland made adjustments in industrial policy and human resource structure in 2009,Fair Friend changed the salary structure and benefit policy according to the local regulations and market standards. At the same time,Fair Friend cooperated with Hangzhou Vocational & Technical college to establish Fair Friend Institute of Electromechanics to process the high-level personnel training and ensure a stable manpower supply and enhance the Group's future competitiveness. In addition to the basic employee benefits policy,we are always focused on employees' opinions and regarding them as an important reference for company's continuous improvement.  
    2. Employee training
      FFG regards employees as the most important asset,so FFG values personnel training and development. Providing relevant training courses to meet the various needs of staff from different regions and to strengthen individual skills and core competency as well as cultivating successors to achieve the goal of sustained operation.
    3. Occupation safety and health
      Providing safe and healthy working environment is Fair Friend's basic obligation as a corporate citizen. In many of the management issues of safety and health,environmental protection and workplace are both important. So,Fair Friend implements occupation safety and health management at each production plant area and obtained certification of ISO 14001. At the same time,every production plant has a safety& health specialist who is responsible for planning,executes and audit health and safety management and continues to improve through audit activities. Each production plant takes safety & health training in order to improve employee's safety & health knowledge. Also,after an accident of safety & health hazard had occurred,our safety & health specialist would analyze the reasons and improve and enhance staff safety education to prevent similar incidents from happening again. In order to promote employee health and early detection of problems,employees would do annual physical examination in accordance with regulations and promote health knowledge or encourage employees to use leisure time to exercise and to stay healthy.
    4. Fair Friend gives priority to shareholder's interest
      During the early days of Fair Friend's business,we raised funds from shareholders to enable our growth. Subsequently,Fair Friend achieved growth and expansion by its own operating profit funds and distributed the profits to shareholders every year. During the economic crisis in 2009,other companies' performances in the same industry had significantly declined. However,under the efforts of Fair Friend's team,FFG successful strategy of machine tool development in mainland and still achieved growth during the recession. Although the overall economic situation is still uncertain ,FFG's management team will continue to go forward with the goal of creating the maximum profit for shareholders,
    5. Fair Friend fully respects customers
      Fair Friend respects customers completely and emphasizes that customer service is the beginning of building long-term relationship with customers. As a commitment to customers,Fair Friend's intensive study of customer's needs and constantly seeking for improvements which lay the foundation for improving technical research & development,system programming and developing projects. In addition,Fair Friend also assists distribution partners to enhance the operational strength and establish long-term stable business foundation. At the same time,Fair Friend provides the customers with Immediate and efficient support so that they become a long-term strategic partner with Fair Friend.  
    6. Persistence on quality and innovation
      Credited to persistence on quality and R & D innovation,Fair Friend machine tool received award of "Taiwan Ministry of Economic Affairs Product Image Award" for three consecutive years in 1994~1996 and in 1999. In the year of 1994,FFG received the award of "The best quality and service of tool manufactory in Asia" by World Manufacturing Engineering & Market and Metalworking Equipment News. In 1996,FFG is the only machine tool manufactory that received "Industry Technology Development Award" by Ministry of Economic Affairs. In 2008,Fair Friend machine tool received the award of "AI Excellence Product Award" In parallel with the well-known enterprises such as MAZAK (Japan,the world's largest),DMG (Germany,the world's second largest)、MAG (U.S.A,the world's fourth largest)、MORISEIKI (Japan,the world's sixth largest)、MAKINO(Japan,the world's seventh largest) and AgieCharmilles (Switzerland,the world's ninth largest). Moreover,Fair Friend ranked No.7 on the TOP 100 excellent suppliers and is the only one manufactory among Taiwan and the mainland of machine tool manufacturers in the world rankings. And now FFG has become the world's largest machine tool group and the largest machine tool group in the greater China region (including Taiwan / China / Hong Kong / Singapore and Southeast Asia).  
    7. The partnerships with suppliers
      The relationship between Fair Friend and supplier is as its English name "FAIR FRIEND",as partners of mutual benefit and win-win relationship. The primary condition Fair Friend considers in selecting suppliers is integrity and honesty. Also,employees are prohibited from colluding with suppliers'/subcontractors' interest or obtain improper personal benefits since FFG believes that only with integrity and win-win relationship,partnership can long-lasting. In addition,the competitive quality,technology,delivery and price are the necessary conditions to be our suppliers,so we constantly ask suppliers to grow together with us through supplier quality system and provide customers the best quality products.
    8. Environmental protection
      "Protect environment,save energy,love earth" are the basic business missions for the modern responsible corporate. How to implement environmental research and development of environmentally friendly energy-saving products to reduce our impact on the environment is the commitment of enterprises to protect the Earth's environment. Also,how to make the most effective application of energy during our daily life and reducing emission of greenhouse gases are always on our mind. For example,office adopts the inductive lighting power to reduce unnecessary waste; adopt the concept of water saving in the washroom to reduce unnecessary consumption of water. In China,the Eleventh Five-Year Plan and the Twelfth Five-Year Plan have very specific requirements for energy saving. Therefore,according to the local government's energy related laws or regulations,energy saving is also a key point for energy management work.

  4. Environmental protection
    "Protect environment,save energy,love earth" are the basic business missions for the modern responsible corporate. How to implement environmental research and development of environmentally friendly energy-saving products to reduce our impact on the environment is the commitment of enterprises to protect the Earth's environment. Also,how to make the most effective application of energy during our daily life and reducing emission of greenhouse gases are always on our mind. For example,office adopts the inductive lighting power to reduce unnecessary waste; adopt the concept of water saving in the washroom to reduce unnecessary consumption of water. In China,the Eleventh Five-Year Plan and the Twelfth Five-Year Plan have very specific requirements for energy saving. Therefore,according to the local government's energy related laws or regulations,energy saving is also a key point for energy management work.  
  5. Vision on Social Responsibility
    Fair Friend always upholds the mutual benefit and win-win partnership with shareholders, customers, vendors and employees as well as keeping the core spirit of the social responsibility of “taking from society and feeding back to society”. Therefore, Fair Friend realizes the importance and necessity of fulfilling corporate social responsibility, and understands by propagating CSR within the corporation, the innovation of corporate brand image and creating new value can be achieved and to reach the goal of sustained operation.
    Envisioning the future, FFG will establish a win-win partnership with shareholders, customers, vendors and employees through reviewing feedbacks given by relevant internal and external stakeholders.Through this establishment to maintain a sustained operation and to fulfill the vision of corporate social responsibility. All the staff of FFG will work together to achieve the goal of becoming a good corporate citizen。